Latest news with #CityFibre
Yahoo
2 days ago
- Business
- Yahoo
CityFibre owners court Virgin Media O2 in race to avoid cash crunch
CityFibre's owners have held talks with Virgin Media O2 (VMO2) over a potential rescue deal as the challenger broadband company scrambles to stave off a cash crunch. Two major investors in CityFibre – Abu Dhabi sovereign wealth fund Mubadala and Goldman Sachs – have approached VMO2 in recent months to discuss options for the company, including a potential sale. Discussions have also taken place with CityFibre's lenders, which include NatWest, Societe Generale and Credit Agricole. One source said the approaches, which came through VMO2's parent companies Liberty Global and Telefonica, were exploratory in nature and discussions are not thought to be ongoing. However, the overtures underscore growing uncertainty over CityFibre's future as a deadline to secure more cash looms. Bosses last year warned the company would run out of funding in mid-2025 'in all scenarios' and issued a going concern warning. Analysts at Redburn Atlantic have branded the financial position 'precarious'. The talks also suggest CityFibre's backers are skirting around chief executive Greg Mesch. CityFibre, which is the largest challenger 'alt-net' company vying to take on BT, has been locked in negotiations to secure more funding for at least nine months, but no agreement has yet been reached. Lenders have appointed investment bank Lazard to advise them in the talks as they seek a further cash injection from existing shareholders. But the process has been complicated by troubles at TalkTalk, another broadband company, which has fallen behind on payments to some suppliers. Industry sources said the uncertainty was unlikely to help the refinancing process given an estimated 150,000 TalkTalk customers are on CityFibre's network, representing almost 30pc of the alt-net's total connections. Speaking at a conference this week, Mr Mesch said: 'We've taken longer and we're working harder on a larger financing today that will accommodate M&A [mergers and acquisitions]. 'It's hard enough to do a financing, but we have to accommodate a financing that will allow us to consolidate not only networks but debt.' A CityFibre spokesman said: 'Any speculation about a potential sale is unfounded. CityFibre is in a strong position and we expect to announce details of our financing shortly, supporting our role in consolidating the sector and accelerating CityFibre's next phase of growth.' CityFibre's shareholders added: 'All shareholders remain committed to CityFibre's long-term success and are actively engaged in supporting the company's next phase of growth.' It is not the first time a potential deal between CityFibre and VMO2 has been explored, with a takeover bid first discussed two years ago. However, analysts have warned any such tie-up would likely require a significant write-down of CityFibre's debts, which stand at roughly £4bn. It comes as VMO2 faces uncertainty over the future of its new wholesale division, which is aimed at taking on BT's Openreach. But the plans have been put on ice while Telefonica, VMO2's Spanish parent company, carries out a strategic review. Virgin Media O2, Mubadala and Goldman Sachs declined to comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
CityFibre owners court Virgin Media O2 in race to avoid cash crunch
CityFibre's owners have held talks with Virgin Media O2 (VMO2) over a potential rescue deal as the challenger broadband company scrambles to stave off a cash crunch. Two major investors in CityFibre – Abu Dhabi sovereign wealth fund Mubadala and Goldman Sachs – have approached VMO2 in recent months to discuss options for the company, including a potential sale. Discussions have also taken place with CityFibre's lenders, which include NatWest, Societe Generale and Credit Agricole. One source said the approaches, which came through VMO2's parent companies Liberty Global and Telefonica, were exploratory in nature and discussions are not thought to be ongoing. However, the overtures underscore growing uncertainty over CityFibre's future as a deadline to secure more cash looms. Bosses last year warned the company would run out of funding in mid-2025 'in all scenarios' and issued a going concern warning. Analysts at Redburn Atlantic have branded the financial position 'precarious'. The talks also suggest CityFibre's backers are skirting around chief executive Greg Mesch. CityFibre, which is the largest challenger 'alt-net' company vying to take on BT, has been locked in negotiations to secure more funding for at least nine months, but no agreement has yet been reached. Lenders have appointed investment bank Lazard to advise them in the talks as they seek a further cash injection from existing shareholders. But the process has been complicated by troubles at TalkTalk, another broadband company, which has fallen behind on payments to some suppliers. Industry sources said the uncertainty was unlikely to help the refinancing process given an estimated 150,000 TalkTalk customers are on CityFibre's network, representing almost 30pc of the alt-net's total connections. Speaking at a conference this week, Mr Mesch said: 'We've taken longer and we're working harder on a larger financing today that will accommodate M&A [mergers and acquisitions]. 'It's hard enough to do a financing, but we have to accommodate a financing that will allow us to consolidate not only networks but debt.' A CityFibre spokesman said: 'Any speculation about a potential sale is unfounded. CityFibre is in a strong position and we expect to announce details of our financing shortly, supporting our role in consolidating the sector and accelerating CityFibre's next phase of growth.' CityFibre's shareholders added: 'All shareholders remain committed to CityFibre's long-term success and are actively engaged in supporting the company's next phase of growth.' It is not the first time a potential deal between CityFibre and VMO2 has been explored, with a takeover bid first discussed two years ago. However, analysts have warned any such tie-up would likely require a significant write-down of CityFibre's debts, which stand at roughly £4bn. It comes as VMO2 faces uncertainty over the future of its new wholesale division, which is aimed at taking on BT's Openreach. But the plans have been put on ice while Telefonica, VMO2's Spanish parent company, carries out a strategic review. Virgin Media O2, Mubadala and Goldman Sachs declined to comment. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-03-2025
- Business
- Yahoo
Broadband boss not expecting more masts after deal
The boss of a broadband company says he is not expecting more telegraph poles to be installed in East Yorkshire. Furqan Alamgir, chief executive of Connexin, spoke to the BBC after his business was acquired by CityFibre - one of the UK's largest network providers. He said: "We don't expect there to be more poles. CityFibre have traditionally been trench diggers but it will come down to what their build plans are in the future." Connexin has previously been urged by campaigners and MPs to share infrastructure with KCOM, which owns the majority of the area's underground network. Mr Alamgir said talks with KCOM about sharing its network infrastructure were "ongoing" and the acquisition by CityFibre would not stop it from "progressing". He said: "I'd hate to have poles outside my own house and it's silly how this has played out. "We've paused our builds over the last few months. We've been working with KCOM and had a lot of support from local politicians. "We'll be working to firm up agreements and we absolutely want to share infrastructure to build our network." However, residents in Beverley, East Yorkshire, who saw poles installed near the homes, said they are "worried" by the CityFibre-Connexin deal. Paul Brayford, from the Beverley and Molescroft Against Broadband Poles campaign group, said: "We're worried the streets where Connexin couldn't install poles will get them and the streets that did will now see fibre optic cables strung across. "It's really frustrating, we don't want clutter and it could get worse." Mr Alamgir said the agreement between Connexin and CityFibre would give households and businesses a wider range of options for internet services. He said: "Hull and East Yorkshire should have the same offering as any other place in the UK and we've always wanted to bring more choice to the area. "CityFibre have plans to reach 8m homes over the next couple of years and we'll be able to offer more services on the back of their investment. "It should bring more competition, improve speeds and driver better products. It's a really exciting deal." Under the deal, CityFibre will also take on the Connexin contract for Project Gigabit, a government scheme to roll out high-speed broadband to over 34,000 premises in Nottinghamshire and Lincolnshire Listen to highlights from Hull and East Yorkshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here. Call to speed up broadband infrastructure sharing Broadband firm pauses pole installations KCOM announces plan to end telegraph pole row MPs meet broadband CEOs about telephone poles Connexin CityFibre
BBC News
26-03-2025
- Business
- BBC News
Connexin boss 'doesn't expect' more telegraph poles after CityFibre deal
The boss of a broadband company says he "doesn't expect" more telegraph poles to be installed in East Alamgir, chief executive of Connexin, spoke to the BBC after his business was acquired by CityFibre - one of the UK's largest network said: "We don't expect there to be more poles. CityFibre have traditionally been trench diggers but it will come down to what their build plans are in the future."Connexin has previously been urged by campaigners and MPs to share infrastructure with KCOM, which owns the majority of the area's underground network. Mr Alamgir said talks with KCOM about sharing its network infrastructure were "ongoing" and the acquisition by CityFibre would not stop it from "progressing".He said: "I'd hate to have poles outside my own house and it's silly how this has played out."We've paused our builds over the last few months. We've been working with KCOM and had a lot of support from local politicians. "We'll be working to firm up agreements and we absolutely want to share infrastructure to build our network."However, residents in Beverley, East Yorkshire, who saw poles installed near the homes, said they are "worried" by the CityFibre-Connexin Brayford, from the Beverley and Molescroft Against Broadband Poles campaign group, said: "We're worried the streets where Connexin couldn't install poles will get them and the streets that did will now see fibre optic cables strung across."It's really frustrating, we don't want clutter and it could get worse." 'More choice' Mr Alamgir said the agreement between Connexin and CityFibre would give households and businesses a wider range of options for internet said: "Hull and East Yorkshire should have the same offering as any other place in the UK and we've always wanted to bring more choice to the area."CityFibre have plans to reach 8m homes over the next couple of years and we'll be able to offer more services on the back of their investment."It should bring more competition, improve speeds and driver better products. It's a really exciting deal."Under the deal, CityFibre will also take on the Connexin contract for Project Gigabit, a government scheme to roll out high-speed broadband to over 34,000 premises in Nottinghamshire and Lincolnshire Listen to highlights from Hull and East Yorkshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.
Yahoo
12-03-2025
- Business
- Yahoo
Is Vodafone broadband down? Customers report internet problems across the UK
Vodafone broadband users are reporting problems with their internet service on Wednesday. More than 800 customers have reported issues with the internet provider since this morning, according to Down Detector, which tracks website outages. The network problems are occurring across the UK, according to impacted users. Some Vodafone customers say they are experiencing very slow broadband speeds, while others can't get online at all. Although Vodafone has yet to release an official statement, the disruption could be related to an issue with its full-fibre partner, CityFibre. The latter has been experiencing service outages since around 2.40 am this morning, which also appear to be affecting the internet service providers (ISPs) that piggyback on its internet infrastructure. Alongside Vodafone, they include a handful of smaller firms like Octaplus, IDNet, Aquiss, NoOne, Cuckoo, and Yayzi. For its part, CityFibre has acknowledged the problem, describing it as a 'widespread outage.' 'We are actively working to resolve the network issue and are providing updates to ISPs. We recommend you continue to stay in contact with your ISP, as they are your direct service provider, and they will receive the most up-to-date information as soon as it becomes available,' CityFibre posted on X at 8.24am this morning. 'Broadband not working here in Leicester, its like a trickle connection, whats going on??' posted a Vodafone user on X (formerly Twitter). 'Any word from @VodafoneUK about their internet going down nationwide? Renewal due as well. Great timing,' wrote another user. Vodafone has responded to some customers online, advising them to use its network diagnostics tool, service status checker (although some users claim this is incorrectly showing there isn't a problem) or to contact its customer support representatives on its website or via Direct Message on X. The last time Vodafone suffered a widespread outage was in 2023, when 3,000 customers from across the country complained of a loss of service.
